Buy a house in Croatia: the complete purchasing guide

With its exceptional coastline, a fast-evolving property market and a buoyant tourism sector, Croatia attracts more and more foreign buyers every year. From stone houses in Istria to contemporary villas facing the Adriatic and apartments intended for holiday rentals, the country offers a broad range of properties that appeal to both retirees and investors.

Before choosing the most attractive region for your property purchase and finalising your buying project, it is essential to have a clear understanding of the legal framework, administrative procedures and associated fees. This guide brings together the key information to help you understand each stage, from acquisition conditions to taxation.
 

1. Why buy a house in Croatia?

Driven by strong tourism demand and Croatia’s entry into the Eurozone in 2023, the Croatian real estate market has been steadily growing, with prices increasing by around 10% on average between 2024 and 2025. For many buyers, the Adriatic coast remains the most sought-after area, combining quality of life, popular beaches and reliable tourist services.

For investors, the appeal also lies in the rental potential of certain regions. In high season, both Istria and Dalmatia show extremely high occupancy rates. Gross yields vary between 5% and 9% depending on the property’s location and quality, and can reach up to 12% for premium villas.

2. Who can buy a house in Croatia?

Citizens of the European Union can freely purchase property in Croatia without particular restrictions, except for certain agricultural or forest lands subject to regulation. Buying a house or an apartment does not require residency or any prior connection with the country.

For non-EU buyers, purchasing remains possible but depends on the existence of a reciprocity agreement between their country of origin and Croatia. An authorisation from the Ministry of Justice is then required, a procedure that usually takes between 30 and 90 days. Most requests are approved, but this step extends the acquisition timeline. Buying agricultural or forest land is, however, highly restricted.

Foreign buyers may also create a Croatian company (d.o.o.) to purchase any type of property, including agricultural land.

Buying agricultural and forest land is restricted for non-Croatian citizens. To acquire this type of property, it is necessary to create a company registered in Croatia. Properties located in protected areas (environmental, military or strategic zones) are subject to restrictions or complete prohibitions for foreign buyers, regardless of the acquisition method.
 

Buying a house in Croatia

3. Administrative procedures to buy a house in Croatia

• Obtain an OIB (Croatian tax number). This number is essential for any property transaction and is issued quickly by the tax authorities. It identifies the buyer in all official procedures, including the registration of the property.
• Verification of the right to purchase. For non-EU citizens, it is necessary to verify the existence of a reciprocity agreement and submit a purchase authorisation request to the Ministry of Justice.
• Check the legal status of the property. Consulting the land registry (Zemljišna knjiga) is essential to confirm ownership, identify potential mortgages or disputes, and verify cadastral compliance. It is also recommended to check building permits and any extensions.
• Sign a preliminary contract (Predugovor). The preliminary sales agreement is often used to secure the deal. It sets the price, deadlines and conditions of the sale. A deposit of around 10% is typically paid at this stage, formalising the commitment of both parties.
• Open a bank account in Croatia. This facilitates financial transfers as well as the payment of taxes and fees.
• Sign the final sales contract before a notary (Kupoprodajni ugovor). The signature must be certified by a Croatian notary, who guarantees the authenticity of the document. The contract formalises the transfer of ownership and triggers the registration procedure.
• Register the property with the official authorities. The file is submitted to the cadastre and the land registry (Katastar), which update the property title. The processing time varies by region, generally between 15 and 30 days.
• Pay taxes and fees, including transfer tax, notary fees, lawyer fees and other administrative costs.

4. Purchase costs and taxation

• Real estate transfer tax – RETT (3%). This tax applies to most transactions involving existing properties. It is calculated on the declared purchase value and represents the main fiscal cost for buyers.
• VAT on new builds (25%). Properties sold by developers are not subject to transfer tax because VAT is already included in the sale price. This mainly concerns recently built residences.
• Notary fees. These vary depending on the complexity of the file and generally range between 1% and 2% of the purchase price.
• Lawyer fees. Many foreign buyers hire a Croatian lawyer to secure the transaction. Fees usually range between 1% and 2% of the property price.
• Agency fees. Croatian agencies often charge a fee to the buyer, typically around 3% of the transaction amount, plus local VAT.
• Various administrative fees. These include translation costs, registration fees and stamp duties.
• Local annual taxation. Some municipalities apply an annual tax calculated per square metre. It remains relatively low compared with other European countries. Annual taxes may include property tax, tax on secondary residences and tax on rental income.
• Capital gains tax on resale. A 20% tax applies if the property is sold within five years of purchase. Deductions are possible, particularly for renovation work supported by invoices.

5. Holiday rentals and rental income

Renting out your property during the periods when you are not using it is an excellent way to improve profitability and offset management costs.

Croatia allows short-term holiday rentals, but the activity must be declared and the property registered with the Ministry of Tourism. A tourist licence, the Kategorizacija, is mandatory for offering short-term rentals. It is issued after inspection and classification of the property (from 1 to 5 stars).

Each tenant must be registered with local authorities, and the tourist tax is payable by the owner or the rental agency. Regulations also limit the number of rental days per year (between 60 and 120 days).

Seasonal rental income is taxed under a flat-rate scheme at a rate of 10% from 1 January 2025. Bilateral agreements and tax conventions between the buyer’s home country and Croatia help avoid double taxation and provide adapted tax relief.

6. Financing your real estate purchase in Croatia

Croatian banks grant mortgages to foreign buyers, although conditions are more demanding than for residents. Applicants must present a solid financial profile (income, guarantees…). Interest rates generally range from 3% to 5%, and the required down payment often varies between 30% and 40% of the total amount.

An alternative is to finance the purchase through a bank in your home country, notably through a mortgage or a secured personal loan.

Buyers may also finance their purchase using personal funds, particularly for secondary residences or rental investments.

The Croatian government also offers subsidies for constructions or renovations that meet certain ecological criteria, such as the “Very Good” environmental label. These subsidies can reach up to 20% of the investment cost. Applications must be submitted to the Ministry of Construction or the Croatian Development Bank (HBOR).

7. Residence status and implications for foreign buyers

It is not necessary to be a Croatian resident to buy property in the country. Likewise, purchasing a property does not automatically grant residency rights.

Buyers may therefore acquire a house or apartment while maintaining their tax residence abroad. However, those who wish to live in Croatia year-round must apply for a temporary or permanent residence permit, granted under specific conditions (employment, financial resources, family circumstances…).

Owners may apply for temporary residence based on property ownership, renewable annually. Permanent residence becomes accessible after five years of continuous residency.

From a tax perspective, being a Croatian resident involves declaring worldwide income. Buyers who wish to retain a different tax residence must pay close attention to each country’s obligations.

8. Practical tips for a successful purchase

• Have the legal documents checked by a local expert. Between cadastral errors and unregistered extensions, some properties require thorough verification. A specialised lawyer can identify anomalies and secure the transaction.
• Compare properties across different seasons. Visiting outside the high season provides insight into daily life: access, available services, sunlight, and ambient noise. These factors influence both comfort and rental value.
• Assess maintenance costs, especially near the coast. Houses located close to the sea often require more maintenance due to wind and salt exposure. It is better to anticipate these expenses.
• Analyse rental potential before buying. If short-term letting is part of your plan, it is useful to study peak demand periods, local competition and administrative requirements such as the tourist licence.
• Plan a financial safety margin. Between additional fees, potential renovation work and administrative delays, having a reserve budget allows for a smoother start.

With a fast-evolving market and an investment-friendly environment, Croatia offers promising opportunities for well-informed foreign buyers.

To further your search and discover available properties, our selection of listings will help you identify the best opportunities for your project:

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